As there is a global shift toward decarbonising electricity and fighting climate change, there is a growing need for business to transition towards green energy and meet their own corporate sustainability targets. By going green, your business can offset its greenhouse gas emissions and help drive renewable energy investments in Australia. When it’s not possible to produce your own green energy (see Solar Feasiblity) there are several alternative options available such as purchasing GreenPower through retailers, directly from green trading companies, or through corporate Power Purchase Agreements (PPA) directly with electricity generators.
The National GreenPower Accreditation Program was founded in 1997 and provides customers with a robust, verified mechanism for purchasing renewable energy. It allows you to source all or part of your electricity from accredited renewable energy generators, such as wind and solar. Buying GreenPower equates to net zero greenhouse gas emissions, and offsets the emissions caused by your business’s electricity use. GreenPower can be purchased through your retailer who obtains Large Generation Certificates (LGCs) on your behalf and surrenders them to the Renewable Energy Certificates (REC) Registry allowing you to claim GreenPower status. If your business purchases 10% or more of its annual electricity usage as GreenPower it is eligible to use the GreenPower Customer Logo on its marketing and business materials.
An alternative way to purchasing GreenPower is through a Corporate PPA directly with an accredited electricity generator. A PPA is a contract between an electricity generator (provider) and a power purchaser (buyer, typically government or large power buyer). Contractual terms vary from anywhere between 5 and 20 years, during which time the power purchaser buys energy, and sometimes also capacity and/or ancillary services, from the electricity generator. Such agreements play a key role in the financing of independently owned (i.e. not owned by a utility) electricity generating assets.
Several large businesses are now entering Corporate PPA’s with renewable energy projects as a means of achieving price certainty to manage long term pricing risks, savings on future energy costs, and to meet corporate sustainability targets. Corporate PPA options were typically for larger users with usage in excess of 50 GWh per annum, however, this has now changed and there are options for companies with much lower usage or buying groups.
T&O offer consulting services in this area. Contact Us and we can assist with finding the right solution for your business.